NEW YORK, Feb. 9, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Royal Group Technologies ("Royal Group" or the "Company") (NYSE:RYG) between February 11, 1999 and October 13, 2004, inclusive (the "Class Period").
The complaint alleges that defendants caused Royal Group's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. The statements were materially false and misleading because defendants knew, but failed to disclose, the following: (1) that defendants engaged in a fraudulent scheme and/or conspiracy whereby defendants used false invoices to steal money from the Company and defraud shareholders; (2) that the defendant's use of false invoices caused the Company to overstate inventory and allowed defendants to delay writedowns on these assets in order to maintain purportedly strong earnings results; (3) that defendants falsely portrayed that the Company's U.S. window business was strong; (4) that the Company materially overstated its financial results during the Class Period; and (5) that as consequence of the above, the defendants' projection for fiscal year 2003-2004 were materially overstated and were lacking an any reasonable basis when made.
On October 15, 2004, Royal Group disclosed the first Royal Canadian Mounted Police production order for three Royal Group current or former executives who faced allegations of defrauding shareholders and creditors. The court documents named company founder, controlling shareholder and non-executive chairman Vic De Zen, former CFO Gary Brown and then current President and CEO Douglas Dunsmuir. The investigation relates to allegations that De Zen, Brown and Dunsmuir violated sections of the Criminal Code for fraud and conspiracy by circulating or publishing a prospectus or statement or account which they knew was false, for a period between January 1996 and July 2004. The news shocked the market. Shares of Royal Group fell $1.12 per share, or 12.49 percent, on October 18, 2004, to close at $7.85 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Royal Group securities on any world exchange between February 11, 1999 and October 13, 2004, and sustained damages, you may, no later than February 14, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.